Bishop urges Malaysia to pay compo to plane victims’ families

Foreign Minister Julie Bishop has called on Malaysia to compensate the families of victims of doomed flights MH370 and MH17 in a “timely manner” after concerns were raised that the airline had restructured its business to delay legal proceedings.

Almost three years after the crashes, lump-sum payments of about $50,000 have been made to the ­relatives of Australian victims of Mal­aysia Airlines flight MH370, which is believed to have crashed into the Indian Ocean, and MH17, shot down by a Russian-made missile.

There are more than a dozen legal battles under way in various Australian federal and supreme courts.

Under the Montreal Convention, an agreement in 1999 to fast-track compensation to the families of air disaster victims, relatives of those who died are ­entitled to about $200,000 — more, if the airline is shown to have been negligent.

Ms Bishop told The Australian Malaysia should move to fulfill its duties under international law quickly. “The government is aware that a number of families of Australian victims are seeking compensation from Malaysian Airlines,” she said.

“We welcome previous undertakings by Malaysian Airlines that it will compensate the families of all victims and would urge Malaysian Airlines to meet its obligations under the Montreal Convention in a timely manner.”

In late 2014, the company was renamed and received nearly $2 billion in state aid after a dedicated act of Malaysia’s parliament, known as Act 765, established ­Malaysia Airlines Berhad in the place of Malaysia Airline System Berhad.

Documents filed this year in a US court on behalf of dozens of victims of MH370 against the airline and its insurer, Allianz, accused Malaysia Airlines of ­attempting to “dodge” its legal ­obligations to those who died and their relatives.

“This sleight of hand by the Malaysian government after hundreds of people on two Malaysian flights are killed in as many months, was clearly a blatant, illegal dodge of its responsibility to the dead, missing, grieving and bereaved,” Mary Schiavo, who represents 98 victims and their relatives, wrote in a submission to the District of Columbia’s District Court.

A spokeswoman for Malaysia Airlines Systems (Administrator Appointed) denied the change from Malaysia Airlines System, or MAS, to Malaysia Airlines Berhad, or MAB, would delay payments to relatives.

“MAS has been committed to ensure all next of kin are fully compensated and to date it has not evaded its obligations to pay compensation in accordance with the principles set out under the applicable international conventions and local laws,” she said.

The search for the wreckage of MH370 is in its final stages, after an Australian Transport Safety Bureau review found the plane would never have been in the 120,000sq km area authorities have spent $200 million searching in the past two years.